Business Model - Revision history

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 *[[Service Management]]: Managing the delivery of services in a way that maximizes value to customers and aligns with the business model.
 *[[E-Commerce]]: Online business models and strategies for buying and selling goods or services.
-*[[Agile Methodology]]: Approach to project management that is often used to iterate and improve business models rapidly.
+*[[Agile Methodology]]: Approach to project management often used to iterate and rapidly improve business models.
 *[[Business Model for Information Security (BMIS)]]: The business model for an information system (IS) is a specific application of a broader business model concept.
 *[[Component Business Model (CBM)]]: A CBM is a more detailed and structured way to represent a business model.
 == References ==
 <references />

@@ Line 597: / Line 597: @@
 === What is Business Model Innovation? ===
-Business model innovation goes beyond incremental improvements to existing products or services. It involves rethinking the core elements of a business model, such as revenue streams, cost structures, value propositions, and customer relationships, to unlock new growth opportunities and respond to changing market dynamics.
+[[Business Model Innovation (BMI)]] goes beyond incremental improvements to existing products or services. It involves rethinking the core elements of a business model, such as revenue streams, cost structures, value propositions, and customer relationships, to unlock new growth opportunities and respond to changing market dynamics.
 *Staying Relevant: Businesses that cling to outdated models risk becoming obsolete. Innovation allows companies to anticipate and respond to evolving customer needs, technological advancements, and competitive pressures.
 *Unlocking New Growth Opportunities: By challenging traditional assumptions and exploring new approaches, businesses can discover untapped markets, create new revenue streams, and achieve significant growth.
@@ Line 648: / Line 648: @@
 '''Alexander Osterwalder and Yves Pigneur:'''
-*Authors of the seminal book "Business Model Generation," which introduced the Business Model Canvas, a widely used visual tool for designing and analyzing business models.
+*Authors of the seminal book "Business Model Generation," which introduced the [[Business Model Canvas (BMC)]], a widely used visual tool for designing and analyzing business models.
 *Co-founders of Strategyzer, a company that offers tools and training for business model innovation.
 *Recognized as leading experts in the field, their work has influenced countless businesses and organizations worldwide.
@@ Line 708: / Line 708: @@
 *Key Resources: Essential assets required to make the business model work.
 *Key Partnerships: External companies or individuals that help execute the business model.
 *Lean Startup: Methodology for developing businesses and products, focusing on customer feedback and iterative design.
 *[[Digital Transformation (DX)]]: The integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value.
@@ Line 723: / Line 722: @@
 *[[E-Commerce]]: Online business models and strategies for buying and selling goods or services.
 *[[Agile Methodology]]: Approach to project management that is often used to iterate and improve business models rapidly.
 == References ==
 <references />

@@ Line 698: / Line 698: @@
 == See Also ==
-[[Business Strategy]]: How business models align with and support overall business objectives.
+*[[Business Strategy]]: How business models align with and support overall business objectives.
-[[Value Proposition]]: The value a company promises to deliver to customers through its business model.
+*[[Value Proposition]]: The value a company promises to deliver to customers through its business model.
-Revenue Model: The strategy for generating income, which is a core component of the business model.
+*Revenue Model: The strategy for generating income, which is a core component of the business model.
-Cost Structure: Breakdown of costs involved in operating the business model.
+*Cost Structure: Breakdown of costs involved in operating the business model.
-Customer Segments: Different groups of people or organizations a business aims to serve.
+*Customer Segments: Different groups of people or organizations a business aims to serve.
-[[Customer Relationship Management (CRM)]]: Strategies for establishing and maintaining relationships with customers.
+*[[Customer Relationship Management (CRM)]]: Strategies for establishing and maintaining relationships with customers.
-Channels: Methods for delivering the value proposition to customers.
+*Channels: Methods for delivering the value proposition to customers.
-Key Activities: Critical activities necessary to execute the business model.
+*Key Activities: Critical activities necessary to execute the business model.
-Key Resources: Essential assets required to make the business model work.
+*Key Resources: Essential assets required to make the business model work.
-Key Partnerships: External companies or individuals that help execute the business model.
+*Key Partnerships: External companies or individuals that help execute the business model.
-[[Business Model Canvas (BMC)]]: A strategic management template for developing new or documenting existing business models.
+*[[Business Model Canvas (BMC)]]: A strategic management template for developing new or documenting existing business models.
-Lean Startup: Methodology for developing businesses and products, focusing on customer feedback and iterative design.
+*Lean Startup: Methodology for developing businesses and products, focusing on customer feedback and iterative design.
-[[Digital Transformation (DX)]]: The integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value.
+*[[Digital Transformation (DX)]]: The integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value.
-[[Innovation Management]]: Managing processes involved in the innovation of business models and practices.
+*[[Innovation Management]]: Managing processes involved in the innovation of business models and practices.
-[[Enterprise Architecture]]: Framework for aligning IT strategy with business strategy, often impacting business models.
+*[[Enterprise Architecture]]: Framework for aligning IT strategy with business strategy, often impacting business models.
-[[Disruptive Innovation]]: Innovations that create new markets and value networks, impacting existing business models.
+*[[Disruptive Innovation]]: Innovations that create new markets and value networks, impacting existing business models.
-[[Sustainability]]: Incorporating eco-friendly practices into business models.
+*[[Sustainability]]: Incorporating eco-friendly practices into business models.
-[[Corporate Social Responsibility (CSR)]]: How ethical and sustainable practices are integrated into business models.
+*[[Corporate Social Responsibility (CSR)]]: How ethical and sustainable practices are integrated into business models.
-[[Strategic Planning]]: The process of defining strategy and making decisions on allocating resources to pursue this strategy.
+*[[Strategic Planning]]: The process of defining strategy and making decisions on allocating resources to pursue this strategy.
-[[IT Governance]]: Framework ensuring IT supports and enables the business model and overall strategy.
+*[[IT Governance]]: Framework ensuring IT supports and enables the business model and overall strategy.
-[[Performance Management]]: Methods to monitor and manage the efficiency and effectiveness of the business model.
+*[[Performance Management]]: Methods to monitor and manage the efficiency and effectiveness of the business model.
-[[Product Management]]: The process of managing the entire lifecycle of a product, which is closely tied to the business model.
+*[[Product Management]]: The process of managing the entire lifecycle of a product, which is closely tied to the business model.
-[[Service Management]]: Managing the delivery of services in a way that maximizes value to customers and aligns with the business model.
+*[[Service Management]]: Managing the delivery of services in a way that maximizes value to customers and aligns with the business model.
-[[E-Commerce]]: Online business models and strategies for buying and selling goods or services.
+*[[E-Commerce]]: Online business models and strategies for buying and selling goods or services.
-[[Agile Methodology]]: Approach to project management that is often used to iterate and improve business models rapidly.
+*[[Agile Methodology]]: Approach to project management that is often used to iterate and improve business models rapidly.
 == References ==
 <references />

← Older revision		Revision as of 11:02, 30 May 2024
Line 696:		Line 696:
	*Geopolitical Factors: To operate successfully in global markets, businesses must navigate complex geopolitical landscapes, including trade agreements, tariffs, and political instability.		*Geopolitical Factors: To operate successfully in global markets, businesses must navigate complex geopolitical landscapes, including trade agreements, tariffs, and political instability.
	The future of business models is dynamic and ever-evolving. By staying ahead of these trends, embracing new technologies, and adapting to changing consumer expectations, businesses can position themselves for success in the years to come.		The future of business models is dynamic and ever-evolving. By staying ahead of these trends, embracing new technologies, and adapting to changing consumer expectations, businesses can position themselves for success in the years to come.
		+
		+	== See Also ==
		+	[[Business Strategy]]: How business models align with and support overall business objectives.
		+	[[Value Proposition]]: The value a company promises to deliver to customers through its business model.
		+	Revenue Model: The strategy for generating income, which is a core component of the business model.
		+	Cost Structure: Breakdown of costs involved in operating the business model.
		+	Customer Segments: Different groups of people or organizations a business aims to serve.
		+	[[Customer Relationship Management (CRM)]]: Strategies for establishing and maintaining relationships with customers.
		+	Channels: Methods for delivering the value proposition to customers.
		+	Key Activities: Critical activities necessary to execute the business model.
		+	Key Resources: Essential assets required to make the business model work.
		+	Key Partnerships: External companies or individuals that help execute the business model.
		+	[[Business Model Canvas (BMC)]]: A strategic management template for developing new or documenting existing business models.
		+	Lean Startup: Methodology for developing businesses and products, focusing on customer feedback and iterative design.
		+	[[Digital Transformation (DX)]]: The integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value.
		+	[[Innovation Management]]: Managing processes involved in the innovation of business models and practices.
		+	[[Enterprise Architecture]]: Framework for aligning IT strategy with business strategy, often impacting business models.
		+	[[Disruptive Innovation]]: Innovations that create new markets and value networks, impacting existing business models.
		+	[[Sustainability]]: Incorporating eco-friendly practices into business models.
		+	[[Corporate Social Responsibility (CSR)]]: How ethical and sustainable practices are integrated into business models.
		+	[[Strategic Planning]]: The process of defining strategy and making decisions on allocating resources to pursue this strategy.
		+	[[IT Governance]]: Framework ensuring IT supports and enables the business model and overall strategy.
		+	[[Performance Management]]: Methods to monitor and manage the efficiency and effectiveness of the business model.
		+	[[Product Management]]: The process of managing the entire lifecycle of a product, which is closely tied to the business model.
		+	[[Service Management]]: Managing the delivery of services in a way that maximizes value to customers and aligns with the business model.
		+	[[E-Commerce]]: Online business models and strategies for buying and selling goods or services.
		+	[[Agile Methodology]]: Approach to project management that is often used to iterate and improve business models rapidly.
		+
		+	== References ==
		+	<references />

@@ Line 1: / Line 1: @@
 == Definition of Business Model ==
-A '''[[Business]] Model''' describes an architecture for how a firm creates and delivers value to customers and the mechanisms employed to capture a share of that value (Teece, 2018).
+A '''Business Model''' describes an architecture for how a firm creates and delivers value to customers and the mechanisms employed to capture a share of that value (Teece, 2018).
 In its simplest form, a Business Model is your profit formula. You use it to acquire customers, service them, and make money.<ref>[http://businessmodelinstitute.com/business-models-for-dummies-overview/ Definition of Business Model]</ref>

@@ Line 1: / Line 1: @@
 == Definition of Business Model ==
-A '''Business Model''' describes an architecture for how a firm creates and delivers value to customers and the mechanisms employed to capture a share of that value (Teece, 2018).
+A '''[[Business]] Model''' describes an architecture for how a firm creates and delivers value to customers and the mechanisms employed to capture a share of that value (Teece, 2018).
-In its simplest form, a Business Model is your profit formula. It is the method you use to acquire customers, service them and make money doing so.<ref>[http://businessmodelinstitute.com/business-models-for-dummies-overview/ Definition of Business Model]</ref>
+In its simplest form, a Business Model is your profit formula. You use it to acquire customers, service them, and make money.<ref>[http://businessmodelinstitute.com/business-models-for-dummies-overview/ Definition of Business Model]</ref>
-A Business Model is a design for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing.<ref>[http://thelawdictionary.org/business-model/ Defining Business Model]</ref>
+A Business Model is a design for the successful operation of a business, identifying revenue sources, customer base, products, and financing details.<ref>[http://thelawdictionary.org/business-model/ Defining Business Model]</ref>
-A Company's Business Model sets forth the logic of how its strategy will create value for customers, while at the same time generating revenues sufficient to cover costs and realize a profit.
+A Company's Business Model sets forth the logic of how its strategy will create value for customers while at the same time generating revenues sufficient to cover costs and realize a profit.
-The question of a business model is often answered with information on what products a company sells and at what price level to which customers. At the management level, this response is often manifested through budget scenarios or a number-heavy business planning, ie business models are reflected in this sense, complex calculations to price, cost, and sales scenarios <ref>[http://www.businessmodelcreativity.net/beitraege/ What is a  Business Model?]</ref>
+The business model question is often answered with information on what products a company sells and at what price level to which customers. At the management level, this response is often manifested through budget scenarios or a number-heavy business planning, ie business models are reflected in this sense, complex calculations to price, cost, and sales scenarios <ref>[http://www.businessmodelcreativity.net/beitraege/ What is a  Business Model?]</ref>
-In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies including culture. The literature has provided very diverse interpretations and definitions of a business model. A systematic review and analysis of manager responses to a survey define business models as the design of organizational structures to enact a commercial opportunity. Further extensions to this design logic emphasize the use of narrative or coherence in business model descriptions as mechanisms by which entrepreneurs create extraordinarily successful growth firms.<ref> [https://en.wikipedia.org/wiki/Business_model Business Model Extract from]</ref>
+In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies including culture. The literature has provided very diverse interpretations and definitions of a business model. A systematic review and analysis of manager responses to a survey define business models as the design of organizational structures to enact a commercial opportunity. Further extensions to this design logic emphasize using narrative or coherence in business model descriptions as mechanisms by which entrepreneurs create extraordinarily successful growth firms.<ref> [https://en.wikipedia.org/wiki/Business_model Business Model Extract from]</ref>
 == Elements of a Business Model Design (Figure 1.)<ref>[http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.453.121&rep=rep1&type=pdf What are the elements of a Business Model Design?]</ref> ==
-A business model articulates the logic and provides data and other evidence that demonstrates how a business creates and delivers value to customers. It also outlines the architecture of revenues, costs, and profits associated with the business enterprise delivering that value. The different elements that need to be determined in business model design are listed in Figure 1. The issues related to good business model design are all interrelated, and lie at the core of the fundamental question asked by business strategists, ie, how does one build a sustainable competitive advantage and turn a super normal profit? In short, a business model defines how the enterprise creates and delivers value to customers, and then converts payments received to profits. To profit from innovation, business pioneers need to excel not only at product innovation but also at business model design, understanding business design options as well as customer needs and technological trajectories. Developing a successful business model is insufficient to assure competitive advantage as imitation is often easy: a differentiated (and hard to imitate) yet effective and efficient business model is more likely to yield profits. Business model innovation can itself be a pathway to competitive advantage if the model is sufficiently differentiated and hard to replicate for incumbents and new entrants alike. In essence, a business model embodies nothing less than the organizational and financial ‘architecture’ of a business. It is not a spreadsheet or computer model, although a business model might well become embedded in a business plan and in income statements and cash flow projections. But, clearly, the notion refers in the first instance to a conceptual, rather than a financial, model of a business. It makes implicit assumptions about customers, the behavior of revenues and costs, the changing nature of user needs, and likely competitor responses. It outlines the business logic required to earn a profit (if one is available to be earned) and, once adopted, defines the way the enterprise goes to market. But it is not quite the same as a strategy.
+A business model articulates the logic and provides data and other evidence demonstrating how a business creates and delivers value to customers. It also outlines the architecture of revenues, costs, and profits associated with the business enterprise delivering that value. The different elements that need to be determined in business model design are listed in Figure 1. The issues related to good business model design are all interrelated, and lie at the core of the fundamental question asked by business strategists, ie, how does one build a sustainable competitive advantage and turn a super normal profit? In short, a business model defines how the enterprise creates and delivers value to customers, and then converts payments received to profits. To profit from innovation, business pioneers need to excel not only at product innovation but also at business model design, understanding business design options as well as customer needs and technological trajectories. Developing a successful business model is insufficient to assure competitive advantage as imitation is often easy: a differentiated (and hard to imitate) yet effective and efficient business model is more likely to yield profits. Business model innovation can itself be a pathway to competitive advantage if the model is sufficiently differentiated and hard to replicate for incumbents and new entrants alike. In essence, a business model embodies nothing less than the organizational and financial ‘architecture’ of a business. It is not a spreadsheet or computer model, although a business model might well become embedded in a business plan and in income statements and cash flow projections. But, clearly, the notion refers in the first instance to a conceptual, rather than a financial, model of a business. It makes implicit assumptions about customers, the behavior of revenues and costs, the changing nature of user needs, and likely competitor responses. It outlines the business logic required to earn a profit (if one is available to be earned) and, once adopted, defines the way the enterprise goes to market. But it is not quite the same as a strategy.
@@ Line 84: / Line 84: @@
 == Business Model vs. Business Strategy<ref>[http://www.digitalbusinessmodelguru.com/2013/02/difference-between-business-models-and.html Difference Between Business Models and Business Strategy]</ref> ==
 The mainstream business press often conflates business strategies with business models. For example, a company like Kickstarter or Amazon will be held up as a new economy company employing a unique business model, when both companies have simply updated existing business models for the digital era. Where companies like Kickstarter and Amazon beat the competition is in their strategies, not their business models. Business models describe how a company is structured and its methods for maximizing revenues and profits. The business model is independent of competitors and the current state of the market, which is where strategy comes in. The business strategy describes how the company will engage competitors, identify and segment customers, and respond to the actual market environment.  A business model is not the same thing as a business strategy, and a business strategy should not be confused with a business model. Strategies are very specific to how businesses interact with competitors in the marketplace and win customers, while business models address the fundamental structure of the business. Naturally, both are tightly intertwined, and a successful company must seek the ideal business model and market strategy in order to be successful. But if you find that you are losing in the marketplace and your strategy isn't working, don't assume you have to throw out your entire business model.
 == See Also ==
 *[[Operating Model]]
 *[[3C's Model]]

← Older revision		Revision as of 11:53, 19 January 2023
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	*[[Operating Model]]		*[[Operating Model]]
	*[[3C's Model]]		*[[3C's Model]]
−	*[[Business Strategy]]
−	*[[IT Strategy (Information Technology Strategy)]]
−	*[[Strategy]]
−	*[[Business Reference Model (BRM)]]
−	*[[Business Process Model]]
−	*[[Business_Model_Innovation_(BMI)]]
−	*[[Business Capability]]
−	*[[Business Architecture]]
−	*[[Business Capability Modeling]]
−	*[[Business Application]]
−	*[[Business Plan]]
−	*[[Business Activity]]
−	*[[Business Objective]]
−	*[[Business Mission]]
−	*[[Business Vision]]
−	*[[Business Value]]

← Older revision		Revision as of 14:34, 7 December 2022
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	*[[Business Vision]]		*[[Business Vision]]
	*[[Business Value]]		*[[Business Value]]
−	*[[Business Value of Information Technology (IT)]]
−	*[[Business Value Analysis (BVA)]]
−	*[[Business Value Assessment]]
−	*[[Business Value Index (BVI)]]
−	*[[Business Value of Innovation]]